Impact of Fed Rate Cuts on Housing and Economy (E97)

Wow, what an interesting couple of weeks it has been! The Fed decided to cut rates, raising many questions about the potential for more rate cuts in the near future. This week, we have a lot of important data set to be released, including unemployment figures, S&P Global Services data, CPI, and Initial Jobless claims, all of which will play a crucial role in influencing market sentiment. The recent cut should start getting individuals ready to refinance their loans, which, in turn, should provide some much-needed relief in the housing market that has been under pressure. Lower rates could incentivize more people to begin the process of getting pre-approved for mortgages, potentially leading to an uptick in home sales. Where do you think rates will go from here? Will we actually see them drop below 5%? In parallel, Bitcoin took a massive hit as it’s currently trading below 90k, while SPY is trading at 678; could this indicate that the market is consolidating in preparation for the anticipated Santa rally? What are your thoughts on these developments, and how do you see them impacting both the housing market and the broader economy in the coming months?